FOR SELLERS

15 STEPS FOR A SUCCESSFUL BUSINESS SALE

1

We start with a full assessment of your business, which involves a thorough and in-depth analysis of all aspects of the business.

2

Provide you with a 'selling range' for your business and discuss your expectations of sale price.

3

Recommend an asking price and a marketing strategy, in order to achieve a sale at a premium price point.

4

Sign an 'Authority to Sell' agreement which authorises us to act as your business broker.​

5

Prepare all the necessary documentation, complete with all the details that a buyer will require.

6

We list your business on 10 business sales sites along with our own top rating website.

7

We search our extensive database for potential buyers and make email contact with likely prospects.

8

Before we provide any information on your business, we require all potential buyers to sign a binding Confidentiality Agreement.

9

Carefully qualify and screen all buyers to make sure they have the financial ability to purchase the business. We arrange a meeting with the buyer and our finance broker if required, and keep you informed about all potential buyers so you know exactly how the sales process is progressing.

10

Arrange inspections with the buyer at your premises with you attending. This is a crucial stage of the sale process and will reveal any concerns or objections that the buyer may have.

11

Liaise with the buyer's accountant and solicitor.

12

We prepare the buyers written offer to purchase in the form of a Business Sale Contract, which is signed by the buyers and includes the deposit.

13

We present you with the contract and together we assess all the aspects of the terms and conditions, and then, you either accept, reject or make a counter-offer.

14

Once agreement is reached on all terms and conditions of the contract, it then becomes binding and your business is well on the way to being sold!

15

Co-ordinate with the buyer, the accountants and solicitors to facilitate the process that ensures that the contract becomes unconditional by the due date. We keep you informed all the way through this crucial part of the sale. Providing everything goes to plan and the sale progresses to final settlement, you receive payment for a successful sale, and Congratulations.

When working with Verified Businesses, you have peace of mind knowing you’re supported by a team of professional negotiators. We’re at your side when it counts most!
To find out more call us today on 07 5479 5588 to discuss your individual requirements in more detail.

SELLERS TOOLKIT - FREE 1 HOUR BUSINESS APPRAISAL

Includes written report. Valued at $220 - NOW FREE.

<span data-metadata=""><span data-buffer="">How to Value a Business

You have a business for sale on the Sunshine Coast.  What is its real market value?

In TIPS on Selling a Business and TIPS on Buying a Business on this site we’ve covered a lot of the variables – different methods of valuation and how they can be applied and cross-checked but on top of this is our own long experience and data base of information on all the businesses we’ve sold here over 13 years, which is really critical in making the final call on what the business should be sold for. Briefly the other material says:

“There are a number of standard methods used to value a business but it’s vital that different valuation methods are each taken into account when calculating the true value of business.

Each one of these methods individually does not always represent the true value of a business. We have seen valuations where the derived value of these five different approaches varied by several hundred percent!.

For example, there are Rule of Thumb values based on multiples of adjusted profits or percentages of gross sales. The rule of thumb methods only work when there are many similar businesses having the same operating expenses and assets. This doesn’t always happen and when you use the method on more unique businesses it just doesn’t work.

However most businesses today are valued as a multiple of SDE (sellers discretionary earnings) with the base multiple varying by industry. SDE is the sum of taxable income before interest, income tax, depreciation and amortisation, which gives EBITDA (earnings before interest, taxes and amortisation). EBITDA is then added the owner’s benefits and discretionary expenses charged to the business like salary, write-off of company car, health insurance, holidays etc which gets us to the true SDE – which is usually far higher than the company’s taxable income.

Most businesses are valued at a multiple of SDE with the multiple varying by industry. We weigh all these factors and adjust the multiple up or down based on our practical experience here. Examples of factors that will value the multiple up are: increasing sales, margins and profits, repeat/referral customers, location, the seller’s willingness to carry a seller note and the business’ upside potential. Examples of factors that will value the multiple down are: declining revenue, margins and/or net, customer concentration, competitive threats, short time in business and an above market facility lease rate.”